Rental turnover is a normal part of property management. But, unusually high rates of turnover can wreak havoc on your bottom line and cause negative relationships with property owners. The longer a unit sits vacant, the more money is lost.

While some turnover is inevitable, there are steps you can take to reduce rental turnover, and keep your renters longer. To figure out how to avoid turnover, you will need  to have a good understanding of what causes it.

There are two different kinds of factors that affect rental turnover. Factors that are inside your business that you can influence, and outside factors that you can’t control. Understanding all the factors that impact resident turnover can help you retain your residents and keep owners happy.

Outside Factors

Unfortunately, some of the reasons residents decide to move out are out of your control. But it is still imperative to understand these reasons so you can anticipate them. One reason a resident may decide to move out of their rental property is because they have decided to buy a house. If interest rates and property costs are down, more people may be considering buying as opposed to renting. On the other hand, if interest rates are high and housing costs are trending upwards you may see more people interested in renting, much like we are seeing now in the real estate market.

Another reason residents may have to move out is because of high living costs or unemployment. If a resident loses their job and can’t pay rent, they may have to find a cheaper place to live. In fact, employment trends are showing less remote work and more hybrid options.

Sometimes, residents will decide to leave a property because they don’t like their neighbors. Maybe they are too loud or they make other people feel uncomfortable. While this is not always in your control, there are steps you can take to avoid this. Conducting thorough background checks and vetting potential residents will ensure that you choose people who will fit in well with the community and other residents.

Internal Factors

31% of residents said the reason they decided to leave a residence was because of poor maintenance practices. As a property manager, making sure your residents feel taken care of is one of the most important aspects of the job. If a resident submits a maintenance request and they don’t hear from anyone for an extended period of time, they may feel like their concerns aren’t being taken seriously.

Even worse, if the maintenance issue takes weeks to be resolved, your resident will grow increasingly unhappy with their living situation. When a maintenance request is received make sure you have a system in place for accepting the work order, and replying to your resident. Keeping residents in the loop about their property maintenance will make them feel like they are being cared for.

How to Improve Rental Turnover

If you are looking for a way to improve communication with your residents, we recommend looking into property maintenance software. With maintenance software, you can keep track of all work orders to make sure nothing falls through the cracks. You can even set up automatic messaging that is sent to your residents after a work order has been submitted. By troubleshooting problems when a resident submits a work order you can eliminate unnecessary trips and improve your repair speed.With designated maintenance software all parties have eyes on what is happening with a repair. Your resident has the ability to schedule work when it works for them and everything is documented. Having documentation can save you time and money in disputes as you can provide a comprehensive records of maintenance.

If you’re interested in taking control of your process, and improving resident satisfaction, schedule a demo with one of our team members to learn how our software can help you retain residents!

The post What Causes Rental Turnover appeared first on Property Meld.

When it comes to rental turnovers, one of the most time-consuming aspects is coordinating all the services that need to happen before a unit is ready for a new resident. In this article, we will break down the rental turn process from start to finish so that you can plan and get a plan in place for the upcoming turn season.

A make-ready process begins when a resident provides their 30-90 day notice that they will not renew their lease. To ensure your residents provide proper notice, ensure your “notice to vacate date” is outlined in the signed lease. This way, you can ensure there is ample time to find a new resident.

After your resident has voiced their intent to move, it is time to conduct a move-out inspection. A move-out inspection is when landlords and renters walk through the property to identify any damages or unapproved changes to the property. When new residents move into a rental, they often fill out an inspection checklist to identify any existing damage. This is an essential part of the move-in process so landlords can reference it during a move-out inspection. Any damages not listed on the initial inspection may be removed from the resident’s security deposit.

Normal wear and tear is an expected part of renting. Still, if a resident has caused costly damage that requires extensive repairs or renovations, they may lose a portion of their security deposit to pay for the damages. Move-out inspections are essential for many reasons. First, it can help you avoid disputes with your renters. If you deduct maintenance charges from your resident’s security deposit without explaining why, they may try and dispute it. A move-out inspection allows landlords to talk through issues with their renters. This way, you can explain what damages the resident is responsible for and why. If your resident understands why they are being charged, they are less likely to dispute the charges.

In some cases, after a move-out inspection is conducted, property managers may allow residents to fix the damages themselves without losing money from their security deposit. This is not always recommended, as the property management company doesn’t have control over the work being done. If you allow residents to fix damages, ensure they use a reputable vendor and that the work is done to your standards.

After conducting the move-out inspection, ensure you have discussed with your resident when they must be fully moved out of the property. This includes moving all personal items out, conducting any necessary move-out cleaning, and returning property keys. Once your resident is fully vacated, you can prepare the unit for a new renter.

Top 10: Make-Ready Checklist

1: Clean the property:

The first step to a successful turnover is deep cleaning the property. This includes thoroughly cleaning floors, windows, surfaces, and appliances. The cleaner the property, the happier your new resident will be, starting the relationship on the right foot.

2: Repair any damages:

Before a new resident moves into a property, you must repair any damages caused by the previous resident. This includes patching holes in the walls, replacing broken windows and doors, fixing broken toilets, and repainting walls if needed. If a resident caused this damage, you might be able to use some of their security deposit to pay for these repairs.

3: Complete necessary maintenance:

Ensure all unit equipment works well before a new resident moves in. Replace the filters on HVAC systems, inspect kitchen appliances, and test the plumbing and electrical systems. In addition, make sure to test the fire alarm and carbon monoxide detector and replace the batteries if needed. This is also a great time to look into setting up preventative programs!

4: Replace any broken or outdated items:

If your properties are furnished, replace any outdated or damaged furniture. If the carpet is stained, it may need to be replaced, and ensure all appliances are in good working condition. Updating any of these items can also give cause to increase rental fees.

5: Update the rental listing:

Take new photos of the unit and update the description of your unit before listing the property for rent.

6: Advertise the property:

Look into online channels for advertising your property. You may also look into other marketing channels based on your location and ideal resident. For example, if you are trying to attract older residents, you may prefer to advertise in a local paper instead of an online rental platform.

7: Meet with new residents:

Conduct thorough background and credit checks when meeting with prospective residents. If they have rental history, you can connect with their past landlords to learn more about them and determine if they are a good fit for your property.

8: Negotiate the lease:

Once you have decided on a new renter, you should meet with them to go over the lease. In this meeting, you will discuss rent, security deposit, and pet policies. Ensure any unique policies in your lease are communicated with your new resident to avoid any disputes. The resident and the landlord should receive a copy of the signed lease.

9: Collect the security deposit and first month’s rent:

After both parties have signed the lease, the resident should pay their security deposit and first month’s rent. This is typically done right before the new resident moves in.

10: Conduct a move-in inspection:

Schedule a time with your new resident to conduct a move-in inspection. This should be conducted right away after they move in. This is a walk-through of the property to determine its state. Residents may note any damages or imperfections at the property. This is used to determine the property’s condition when they moved in so you can evaluate any damages caused by a resident during their time in your property.

Why is turnover speed important?

According to our data, 45% of the property management companies we spoke with complete their turns in 9 days or less. The quicker you can complete a turnover, the better. Why? The longer a unit sits vacant, the more money you and your property owners lose. Owners and investors can lose thousands of dollars from a team sitting empty for 14 days. Check out this article to figure out the exact costs of a vacancy. In addition, we know that many businesses are struggling with staffing maintenance technicians and third-party vendors.

Rental turnover tasks can be time-consuming and mundane for your staff, taking time out of their day to be better spent elsewhere. Lastly, resident churn is directly tied to owner churn. The happier your residents are, the more likely they are to renew their leases. The less turnover you have, the more money your owners will make and the happier they will be. Keeping your turnovers closer to 0 will improve owner satisfaction. Lowering the number of turnovers will result in happier owners.

Factors that affect turnover rate

As we mentioned, poor maintenance processes are one of the most common reasons a resident decides to move, but there are also factors to keep in mind that aren’t directly related to the services you provide. Depending on the state of the housing market and interest rates, more people may decide they want to own a home. Industry data shows that areas with a low median and high job growth tend to have lower retention rates because residents change jobs more frequently.

Another great way to retain residents is to upgrade your properties with the amenities your renters want. According to industry data, these are the top five amenities renters seek in their homes.

Top Five Amenities for Renters

1- High speed internet

2- Walk-in closet

3- Soundproof walls

4- A balcony or patio

5- In-unit washer and dryer

These upgrades can help you attract new residents and keep your current residents longer, leading to lower turnover rates.

Understanding standard rental turnover services and costs can help you better prepare to deal with rental turnover. Although turnover is an unavoidable part of property management, you can take steps to lower your turnover rate and ensure turns go as smoothly as possible.

With designated maintenance software, you can keep track of all tasks associated with turns.In addition, you will be able to see your average turnover rate and what you can do to improve those key metrics. With software designed specifically for maintenance, turns are easier to manage, and your residents and owners will be happier.

Schedule a demo to improve your maintenance metrics.

The post Rental Turnover Services appeared first on Property Meld.

In August 2022, retention rates in larger markets averaged well above those in years before the pandemic. Retention is on an upward trend, so keeping residents’ satisfaction top-of-mind is as essential as ever.

We are seeing slight increases in housing supply, impacting resident retention, particularly in the higher-end markets. Retention rates have declined the most year over year in higher-priced, upscale apartments.

Lower-class residences have the highest retention rates, but vacancy is the lowest, and residents have fewer alternatives.

Why is Turnover Rate Important

Monitoring your turnover rate compared to industry averages is a crucial way to measure the success of your property management business. Turnover rates play a significant role in the profitability of your business. Tracking your turnover rate can help you learn how satisfied residents are with your services and identify areas of improvement. If your turnover rate is much higher than the industry average, that may indicate that your process needs to be fixed and residents are unhappy. Considering why residents have moved out can be a great way to audit your current process.

To calculate your turnover rate, divide the number of residents that move out in a year by the total number of residents in your properties, then multiply by 100.

For example, you have 1,352 residents in all your properties. In 12 months, 487 of those people moved out. Use the following formula to calculate your turnover rate.

487 / 1,352 = 0.3602 * 100 = 36.02%

In a year, your average rental turnover rate was 36.02% compared to the national average of 45.2% in 2022, and you have a pretty healthy turnover rate.

Calculating rental turnover rate is essential to improving your bottom line and can provide valuable insights into your property management business. For example, if you have high turnover rates and all your residents mention similar issues in their move-out surveys, you can determine areas you need to work on.

 Common causes of rental turnover include:

1.  An inefficient maintenance process.

2. Communication issues.

3. Drastic rent increases.

4. Properties that haven’t been taken care of.

If you see drastic increases in your rental turnover rate, look at your process and ensure you provide your residents with a positive experience.

If you are interested to calculate rental turnover and improving the speed of your make-readies, schedule a demo to learn how property maintenance software can help you take control of the turnover process.

Or, check out this blog article to learn more about common rental turnover services.

The post How Do You Calculate Rental Turnover Rate? appeared first on Property Meld.

One concern with rental turnovers is they can be an extremely costly process. Depending on the state the property was left in, you could be paying thousands of dollars to clean and repair the property. This is why vetting all potential residents before they sign their leases is essential. Ensuring your lease requests references from a previous rental can help. Talking to previous landlords significantly indicates whether a renter will take care of your property. If you need to evict a resident, there is a higher chance the property will need a lot of work done than a renter who decided to move on their own.

Turnovers, also called “make-readies,” can be stressful for property managers because they are unpredictable. If your turnover rate exceeds the average of 45.2%, your team may be bogged down with make-ready tasks, and you will have to work harder to fill your vacant properties. In addition, make-readies can have unspecified turnover fees associated with them. Sometimes all a property needs is a deep clean and a new coat of paint; other times, significant damage needs repairing.

Below is a list of the most common turnover fees associated with make-readies. We’ve included the average charges for those tasks according to industry data.

1. Trash Removal, Up to $500 a day for dumpster rental

Often residents may leave things behind after moving out. If trash or cleaning supplies are left behind, throw them out. However, depending on the items left behind and your state, you may be required to let residents know. Are you looking at a large trash haul? Depending on the size, you’re considering renting a dumpster for up to $500 daily. Send your resident a written notice of any items left behind. Typically, it is required to give the resident​​ thirty days to pick up any belongings before they are thrown out.

2. Make Repairs and Replace Appliances, $85 – $750 depending on the unit’s state.

Before a new resident moves in, you want to make sure everything in the property is in working order. Replace air filters and light bulbs and change the batteries in smoke and carbon monoxide detectors. Inspect the property for water damage, leaky pipes, or loose hardware and fix them as needed. If anything is broken, like a toilet or cabinet, replace it. Lastly, test all appliances and make sure they are in good working condition. If your appliances are old or broken, it may be time to replace them. At this time, you should also fix anything that was listed as damaged or broken during the move-out inspection.

3. Fix Larger Issues, $7,500 to carpet a 1,500 sq foot home.

The best-case scenario is that you have vetted great residents who care for and respect your property. However, sometimes you have a renter who may cause significant damage to the property. For example, residents with pets or children may wreak havoc on your flooring, and the carpet or tile must be replaced. If there are any holes in the ceiling or walls, patch and paint over them. Many residences will need a fresh coat of paint to cover any marks and holes from previous residents.

4. Deep clean the apartment, $50 an hour for professional cleaning services

After all the repairs have been completed, you will need to deep clean the entire property. This includes all the appliances, floors, light fixtures, and trim. A property should be spotless for your new resident. Many property managers hire a professional cleaning service since they have all the necessary equipment and are often faster than an internal team.

5. Change the locks, $50-$300, depending on the amount and type of locks.

After the property is ready for a new resident, the last step of the make-ready process is changing the locks. This is a safety issue to ensure no prior residents made a copy of the key. This step will help your new residents feel safe in their new homes.

6. Marketing the unit to find new residents, the average budget for a 514-door company is $1,154 a month.

A hidden cost many people need to think about when dealing with turnover fees is the cost to market your rental property and attract new residents. Many property management companies rely heavily on digital advertising. However, it would help if you determined the demographic of your target market to determine the best marketing channels to utilize. For example, if you have many older residents, you may have more success using traditional advertising methods like print ads or billboards.

It is hard to calculate the exact cost of  turnover fees because the cost will vary depending on the status the property was left in. But as a rule of thumb, property managers can expect to spend anywhere from $1,000-$5,000 on turnover. This is why it is so important to keep your residents happy so you aren’t losing money due to a high turnover rate. Check out this article to learn how you can lower your turnover costs.

The post What Are Turnover Fees? appeared first on Property Meld.

1. The first is lowering your turnover rate and decreasing the number of turns you must complete. The fewer turnovers you have, the more money you will be making. However, as we all know, turnovers are inevitable. Factors outside your control may cause residents to move, but there are things you can do to limit the number of turnovers you have to compete.
2. The second way to lower turnover costs is by automating and optimizing your turn process to make it as efficient as possible. The quicker you complete a turn, the faster a new resident can move in.

Lowering Your Turnover Rate

Keeping renters happy and renewing their lease may seem challenging, but it is achievable. When you focus on improving your resident satisfaction, your turnover rate will also improve. The problem is that many property management companies don’t have a way to track resident satisfaction, nor do they regularly check their online reviews.

Online reviews can be a great way to gauge your resident satisfaction. If you receive high praise from your residents, they are likely happy with their living experience. When you receive a positive review, thank your resident for their kind words. This shows them and other prospective residents that you value their opinions.

However, if you have a low online rating and constantly receive negative reviews, it may indicate that it is time to change. Read through your negative reviews and try to discover a pattern. They may be maintenance-related, management related or centered around one employee. Identifying these trends can help you determine what changes need to be made. When you receive a negative review, respond with an apology and do your best to correct the situation quickly.

In addition to monitoring online reviews, ask your residents for feedback after a request they’ve made is complete. Many property managers send surveys to collect resident input after a maintenance repair. You may also collect annual surveys or ask residents leaving to complete a move-out survey. Allowing your residents to provide feedback makes them feel important, heard, and allows your team to analyze the successes and failures of your process.

Lowering the Cost of Turnovers

You will still deal with turnovers even if you prioritize resident satisfaction. Turnovers are one of the most expensive parts of property management due to all the unforeseen factors. But according to industry data, the turn cost averages around $1,750. For a full breakdown of turnover costs, check out this article. Finding ways to lower turnover fees and make-ready costs is essential to your bottom line. The best way to reduce the costs associated with turnovers is to complete the make-ready process as quickly as possible. The highest turnover cost is the rent lost due to a vacant unit. So the quicker you can turn over properties and get a new resident moved in, the less it will impact your profits. But how can you lower your average turnover speed?

First, it is nearly impossible to improve a metric if you don’t have a baseline of where you started. We talk to many property management companies who aren’t tracking the speed of make-readies and turnovers. This is detrimental to your business. When you’re not tracking your turnover speed, tasks will fall through the cracks if turnovers aren’t being properly monitored.

Improving your make-ready speed is one of the best ways to lower turnover costs. Review your current rate of preparing a unit for rent. From there, you can set a goal for how much you want to improve your speed. Try to complete all your turns in 7-10 days to avoid losing profit from vacant units. With designated property maintenance software, you can keep track of your turnovers to ensure everything is remembered. Once a resident gives their notice to move out, you can start scheduling repair tasks with your vendors immediately. In fact, with automated property maintenance software, you can assign specific tasks associated with turnovers to be automatically assigned to your preferred vendor. This way, you can complete all your tasks quickly and begin marketing your property.

Schedule a Demo to Learn More About Improving Resident Satisfaction and Turnover Time

The post How to Lower Turnover Costs appeared first on Property Meld.

As we approach the summer season, many property managers prepare for an influx of turnovers. 80% of rental turnovers happen in May through September. Rental turnover is the number of residents that decide to move out when their lease is over versus those that choose to renew their lease at your property. In addition, it can be used to refer to the time between a lease’s expiration and the date a new resident moves-in. Rental turnover encompasses all the tasks needed to get a property ready for a new renter. It goes beyond routine property maintenance and often requires a few work days to get the unit in perfect shape for a new resident.

There are a few key components to a successful turnover:

1: The Move-out of the current resident

2: Getting the property rent-ready

3: Marketing and leasing the property to a new resident

Rental turnover is a normal part of property management, but if it’s not handled correctly it can start to wreak havoc on your bottom line. Keeping your turnover rate low, and making sure you have a process for getting units turned over quickly is imperative to your success. The quicker you can turn a unit and make it rent ready, the better. The longer a unit sits vacant the more money you will be losing since you won’t be receiving any rental income. The best way to reduce your rental turnover is to focus on resident satisfaction and retention. The happier your residents are, the more likely they are to renew their lease.

With a software that allows you to easily track resident satisfaction you can lower the amount of residents moving out.

What is the Average Rental Turnover Rate?

During an inspection when your resident moves out, you will evaluate the property and determine if the resident caused any damages that need to be taken from their security deposit. After that, property managers can determine all the maintenance work that needs completed and assign necessary repairs with vendors. This includes carpet replacement, painting, updating electrical, cleaning, and more. The turnover is complete after the unit is declared ready for rent.

It is important to track how long your turns are taking so you can evaluate if any improvements need to be made to your process. In addition, failing to properly track turnovers with a dedicated software can lead to units sitting vacant because they were missed. Units sitting vacant for too long have a huge negative impact on your bottom line, and will lead to property owners becoming frustrated with the service you’re providing.

In 45% of property management companies we studied, the average turnover period lasted less than nine days. The largest group in this segment completed turns within five and seven days.

The other 49% studied reported their turnovers taking nine days or longer. 33% of those property management companies took 13 days or longer to complete a turnover.

Out of the companies studied the remaining 6% reported they do not track their turnover rate. Even more shocking, only 71% of property management companies reported conducting a final quality inspection.

The best way to track your turnover rate and ensure you are completing turnovers quickly is to compare your turnover rate with the industry average. In 2018, the national average turnover rate was 48.8% and continues to improve as landlords start focusing more on resident satisfaction.

To calculate your own turnover rate, use the following formula:

Number of residents who moved out in a year / total number of residents * 100 = rental turnover rate

For example, if you had 100 residents move out and you have 250 total residents your average turnover rate would be 40% (100/250*100=40%)

Common Reasons Residents Turn

There are many reasons a resident may decide to move out of a rental property. One of the more common reasons residents may choose to move is because they have decided to buy a house. In addition, residents may move because they have gotten a new job or found another rental that is a better price. However, one of the main reasons residents churn is because they are unhappy with their rental experience. Oftentimes, the culprit is maintenance issues. According to our data, 31% of residents said maintenance is the reason they decided to leave a property. This could be because their maintenance issues took too long to be completed, or  the process of submitting a work order was confusing and time-consuming. By taking control of your maintenance process and  keeping resident satisfaction top-of-mind, you can lower your turnover rate.

A great way to monitor resident satisfaction is paying attention to online reviews. If a resident is unhappy with a maintenance job, they may leave a negative review. Monitoring online reviews can help you identify problem areas in your process, and give you  the ability to reach out to upset residents and solve the issue. With a designated maintenance software you can send residents an automated message when a work order is complete asking them to provide feedback. This will help you keep a pulse on your team and the maintenance process and ensure you are providing your residents a positive experience.

What Tasks Are Associated with Turns?

One of the most time consuming aspects about completing turns is scheduling all the tasks that need to be completed. Depending on the state of the residence you may need to repaint, replace carpets, replace appliances, and deep clean. Most property management companies don’t have a full time maintenance technician who can complete all these tasks in a timely manner, so they need to be outsourced to third party vendors. Just the scheduling of all this work is a time consuming task for property managers and maintenance coordinators. If you are managing upwards of 500 units, this task becomes nearly impossible to execute manually without things falling through the cracks, or your average turnover time increasing.

It is important to have move out expectations clearly outlined in your lease agreement. This way, residents are aware of the steps they need to take when moving out, and they understand the timeline for giving notice, move-out inspections, and the return of their keys. Without outlining these things in advance it is hard to hold your residents accountable for their responsibilities during move out, which will also contribute to unnecessarily long turns.

What Are Rental Turnover Services?

As mentioned, many property management companies don’t have an in-house maintenance technician capable of completing all turns. For one, the job is time-consuming and secondly, many of the jobs required need a trained professional. You may have to replace light fixtures, tear up and redo carpet, or replace appliances. Sometimes, property managers will schedule all the jobs with different vendors, or you can hire a crew that is dedicated to turning over rental units.

When searching for a crew to turnover your rental units look for a vendor that is quality, has good reviews from your peers, is easy to get ahold of, and has a team that can complete a variety of skills. This way, you won’t have to hire a separate vendor to paint, clean, and make any small fixes. The more jobs one vendor can complete the less vendors you must locate and schedule, meaning you can get turnovers completed quicker.

What Is the Cost of Finding a New Resident?

The reason turnovers are such a big deal is because vacant units are a loss of your monthly income. Not only are you losing monthly rent payments, but the expenses of turning over a unit, and the insurance you pay on a residence can add up quickly and have detrimental consequences on your bottom line if a unit isn’t filled.

As of June 2022, the average cost for a one bedroom apartment was $1,876. That number may be higher based on the number of bedrooms, bathrooms, amenities, and the location of your residence. In addition, vacant properties that have sat vacant for longer than 30 days often require a different type of insurance that is more costly than traditional landlord insurance. Once you have added up the cost of rent, property taxes, utilities, and utilities, monthly expenses on a vacant unit are easily over $2,000.

This is before you factor in the costs of a turnover. Granted, some of this may be taken out of your previous residents security deposit, but a lot of it comes from the property management company or landlord. Cleaning fees, new appliances or light fixtures, paint, and new flooring can add up to hundreds of dollars. If you add this to the cost you are losing each month, turnovers can get really costly in a short period of time.

Let’s put this into perspective. If your property owner has 40 single-family homes with an average 14-day turnover period, your owners can lose thousands of dollars in income due to the vacancy gap.

Here’s the math:

• 14 days vacant / 365 days = 3.8%
• Monthly Gross potential rental income = 40 single family homes x $1,600 per month = $64,000.
• Vacancy gap expense = 3.8% x $64,000 = $2,434 lost to the vacancy gap.

But that isn’t all. We also quantify the value of your turn to other tasks like…

• • Move-out cleaning services: $360
  • Carpet cleaning: $120
  • Window cleaning: $80
  • Oven cleaning: $15
  • Total One-Time Costs: $575

• Total cost of a 14 day vacancy gap: $3,009

Every day a unit is empty, your owners and investors are losing money.

How can you keep residents longer and avoid turnover?

Since we know that maintenance issues are one of the top reasons residents decide to leave a rental property it is crucial that your maintenance process is keeping the resident experience top priority. Is it easy for your residents to schedule a maintenance request? How quickly does someone reach out to them to schedule the work? Most importantly, how long does it take for their maintenance request to be fixed?

If your answers to these questions aren’t providing a positive experience for your residents, it is time to make a change to your process. If residents can easily submit a maintenance request, someone gets back to them in a timely manner, and their issues are fixed efficiently, they are more likely to be happy with the renting experience and renew their lease. As a bonus, happy residents may leave positive reviews online which can help you attract new renters.

5 Tips to Minimize Resident Turnover

1: Screen good residents: Screening good residents for a rental property is important because it helps to ensure that you select residents who are reliable, responsible, and financially stable. This way you can reduce property damage, unpaid rent, and make sure they are a good fit for your property.

2: Collect Feedback: One of the best ways to show your residents you care about their experience is offering them the chance to provide feedback. If a resident has a negative experience they want a way to ensure it doesn’t happen again. If you receive a negative review, reach out to the resident and work to resolve the problem. Positive feedback is great for determining where you are doing things right, and having positive reviews online is a great way to attract new residents.

3: Communicate: Communication is arguably the most important aspect to maintaining positive resident relationships is through communication. It is the first step of the Ladder to Maintenance Excellence, and is the foundation to a successful property maintenance strategy.

4: Be Transparent: Sometimes we all have to deliver bad news, and the best thing to do is be transparent. As a property manager, you may run into these issues with your residents. If you have to raise the rent, let your residents know in advance and be honest with them about the reasoning. If a maintenance request is taking longer than anticipated, let your resident know upfront. Being transparent will build trust with your residents, and lower your chances of upsetting them.

5: Take care of the property: Everyone wants to live in a place that is well-taken care of. Beyond making sure maintenance requests are taken care of quickly, you should also work to maintain the curb appeal of your properties. If residents aren’t responsible for their own lawn care, make sure you are keeping the landscaping nice. This includes things like mowing, watering, and pulling weeds. If your property has any shared amenities make sure they are clean and well maintained. All these things will make residents more inclined to renew their lease.

As a property manager dealing with turnover is inevitable. But there are steps you can take to reduce the amount of turns you have to complete, and improve your bottom line. In addition, by having a streamlined process for handling turnovers you can get vacant units filled as quickly as possible.

If you are struggling with an abnormally high turnover rate, or are struggling to keep up with turns, it is time to find a new solution. With dedicated maintenance software, you can provide your residents a better customer experience, increasing their likelihood of lease renewal. In addition you can automate certain tasks associated with turns to  make the process more efficient.

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The post Rental Turnover: What Is It and How Can you Fix It? appeared first on Property Meld.

As a property manager, rental turnover is inevitable. There will always be reasons why your residents decide to move out of your property and not renew their lease. While the turnover process is time-consuming, creating a rental turnover checklist can help make the process smoother for you and your residents.

What is Rental Turnover? 

Rental turnover occurs when a resident decides they do not wish to renew their lease and plans to move out. Since a new renter will be moving into the property, you must schedule maintenance tasks to take care of any wear and tear that occurred during the lease period. A turn aims to get the property in great shape quickly so the unit doesn’t stay vacant for too long.

What is Included in a Rental Turnover Checklist

A rental turnover checklist outlines all the components of a successful turn. With this checklist, you can ensure everything gets noticed, and turns are completed efficiently. If you want a better way to manage turnover, consider investing in maintenance software. With dedicated property maintenance software, you can track all your turnovers and schedule tasks with vendors and maintenance technicians as soon as you know a unit will become vacant. This way, nothing falls through the cracks, and turns can go faster.

1: Resident gives move-out notice

The turnover process begins as soon as a resident gives notice to move out.

2: Schedule an inspection

Inspect the property with the current resident to identify any damages.

3. Begin advertising the property

List the property to start generating interest with new renters. Make sure to use high-quality images and descriptions of the property.

4. Schedule any maintenance

Schedule any necessary maintenance with vendors. This may include replacing flooring, repainting, fixing appliances, and any other damage that occurred during the lease term.

5. Collect keys and last rent payment

Once you have set a specific move-out day with your resident, set up a time to meet with them to collect their keys. If rent is due, collect at this time.

6. Move-out inspection

Conduct a move-out inspection to make sure the resident didn’t leave any personal belongings, and they completed their move-out checklist (if applicable).

7. Change the locks

For security reasons, many property managers will change the locks between residents to ensure the previous resident doesn’t have a key.

8. Begin showing the property

Schedule showings with potential residents once the property looks new again.

9. Screen and choose resident

Screen potential candidates with a background and credit check. Look into their job and rental history to ensure they fit your community well.

10. Collect the security deposit and first month’s rent

Once you have reviewed and signed the lease with your new resident, you should collect the first month’s rent. (This may vary depending on what is outlined in the lease agreement.)

11. Conduct Move-In Inspection

Once your new resident has moved in, you should conduct a move-in inspection. This is a walkthrough with you and your resident to identify any issues with the property. By outlining this at the beginning of the lease, a resident can’t be charged for these issues.

Common Rental Turnover Services

Many rental turnover services are part of the normal wear-and-tear that occurs in a property. Some, however, are more significant damage. Below is a list of tasks commonly associated with the turnover process.

• Patch any holes in the wall and repaint
• Look for any leaks or cracks
• Repair or replace any broken appliances
• Replace or deep clean the carpet
• Replace batteries in smoke detectors and carbon monoxide detectors
• Deep-clean the entire property
• Complete any necessary landscaping

A make ready board template only solves a portion of the issue. Are you interested in taking the guesswork out of your turnover process and automating your work orders with a web-based platform? It takes a team to tackle turns, and our software can help! Request a demo and one of our maintenance rockstars will arrange a customized demonstration of Property Meld. See how we can help maximize efficiency and decrease the cost of turns.

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The post Rental Turnover Checklist appeared first on Property Meld.

A make-ready, also known as a turnover or rental turnover, refers to the process of preparing a rental unit for a new resident after the previous one has moved out. This crucial phase ensures the property is in pristine condition and ready for new occupants.

What is a Make-Ready?

The make-ready process starts as soon as a resident decides to move out. The first step is a move-out inspection, where property managers assess any damages or necessary repairs. This inspection helps determine the scope of maintenance required to make the property rent-ready.

Once the previous resident has fully moved out, the make-ready process can commence. Key tasks often include:

• Painting: Refreshing walls to enhance the property’s appeal.
• Deep Cleaning: Ensuring the unit is spotless.
• Replacing Carpets and Fixtures: Upgrading worn-out elements.
• General Maintenance: Addressing any minor repairs or updates.

The aim is to ensure that the unit is in excellent condition for the next resident, meeting both aesthetic and functional standards.

Cost Factors for Make-Ready

The cost of a make-ready can vary widely, largely influenced by the property’s condition and the length of time the unit remains vacant. On average, rental turnovers cost around $2,500. Key factors impacting these costs include:

• Property Condition: Extensive damage or wear and tear increases repair costs.
• Vacancy Duration: Longer vacancy periods mean more lost rental income and continued utility and insurance expenses.

Effective make-ready management is essential for minimizing vacancy time and maximizing rental income.

How Long Does a Make-Ready Take?

The duration of a make-ready can differ significantly between property management companies. Larger companies often complete make-readies faster due to their established processes, such as:

• Automation Tools: Streamlining the turnover process.
• Preferred Vendors: Working with trusted contractors to expedite repairs.
• Efficient Internal Maintenance: Utilizing in-house technicians for quicker turnarounds.

Ideally, aim to complete make-readies within 7-10 days. This timeline helps reduce vacancy periods and optimizes rental income.

Tips for an Efficient Make-Ready Process

1. Turnover Checklist: Create a comprehensive checklist to ensure all tasks are completed and nothing is overlooked.
2. Property Maintenance Software: Invest in software to manage make-readies efficiently. This software allows you to:
   • Schedule and track all tasks associated with the turnover.
   • Keep all turnover-related information organized in one place.
   • Monitor and improve turnaround times through a metrics dashboard.

By leveraging these tools and strategies, you can enhance the efficiency of your make-ready process, reduce vacancy periods, and increase overall rental income.

In addition to a turnover checklist, you could also look into property maintenance software. With dedicated maintenance software, you can set up specific projects for turnovers. When you receive notice from a resident they are moving out, you can start scheduling all the tasks required to complete the project. With  maintenance software you can keep all turnovers organized in one location. In addition, with a metrics dashboard you can track how long your turns take and work to improve that metric over time.

The post How Long Should a Make Ready Take? appeared first on Property Meld.

Rental turnover is one of the most time-consuming and overwhelming tasks for property management companies because they involve many moving parts. Property managers must coordinate with the resident to schedule move-out inspections, collect keys and last month’s rent, and determine what portion of their security deposit they will get back. In addition, they must coordinate with vendors to schedule all the repairs and cleaning to prepare the residence for rent. The most stressful part is that these tasks must be completed efficiently to lessen the negative financial impact. The longer a unit sits vacant between residents, the more money you lose. If you have a higher-than-average turnover rate, and it takes you a long time to complete a turn, you are losing more money to turnover costs than you realize, and your property owners and investors will not be happy.

What Factors Impact Rental Turnover

One of the best ways to minimize losing money to turnovers is to prevent them from happening in the first place. Some of these factors are out of your control. For example, one of your residents may have gotten a new job or decided to buy a house. However, poor management is one of the most common reasons residents leave a property. Renters often rent because they want to avoid the hassles that accompany home ownership. Residents don’t want to deal with maintenance or maintaining their property. If your company’s team is hard to reach or lacks direct communication, they will grow dissatisfied with your services.

Some ways you can improve resident satisfaction and improve your turnover rate are:

1: Communicate quickly and effectively: If a resident submits a work order, get back to them as soon as possible. Let them know you received their request and when the repair will be completed.

2: Keep residents informed: If you have a maintenance request taking longer than expected, or are changing a policy, let all your residents know. Keeping residents in the loop will make them feel cared for and eliminate any disputes or upset residents down the road.

3: Take care of the property: People want to live in a place they are proud of, and renters are no exception. Take care of shared spaces and keep up with the property’s curb appeal. Giving your residents a beautiful, comfortable place to live will make them want to stay longer.

Providing your residents with the best living experience possible will increase resident satisfaction and make them want to stay at the property longer, lowering your turnover rate.

Turnover Cost Calculator

To accurately calculate the cost of a turn, you have to price out everything that goes into preparing a unit to be rent ready. The most costly expense is the revenue you lose with an empty unit. Ideally, the longer your unit sits vacant, the more money you lose. This is why it is imperative to have a well-thought-out process for handling turns to get a new resident moved in as quickly as possible.

Turn costs can fluctuate based on the state of the property, the area the property is in, and rental demand. If you regularly maintain your properties and implement preventative maintenance tasks, chances are you won’t have to spend too much on costly repairs. However, if a property needs a new HVAC system, kitchen appliances, or roofing, you could spend much more to get rent ready.

Expenses add up quickly, and between lost rent, repairs, marketing, and acquiring a new resident, turnover can promptly tank your profits.

Your monthly rent is $1,200, and your unit has sat vacant for 35 days. The national average hourly rate for a maintenance technician is $20; for this example, it takes him 10 hours to turn a unit. You have already lost $1,600 in income without calculating repair costs.

Based on industry rates, the approximate price for a move-out cleaning is $100 to $355. This varies based on the size of the property and the state it was left in.

In addition to cleaning, minor repairs often need to be made to make the property like new again.

• Carpet cleaning: $120
• Window cleaning: $80
• Oven cleaning: $15
• Total One-Time Costs: $215

Cost to Find a new Resident

In addition to repair costs, you must factor in the price of advertising the unit. Whether you advertise online or utilize traditional media outlets, you often need to pay to place your advertisement. In addition, you may have to pay a leasing agent to show the property to prospective residents.

In an increasingly digital age, ensuring your property management business has a strong online presence is more important than ever. This makes it easier for prospective residents and property owners to find you. To stand out against the competition, you need a professional, visually appealing website with high-quality images and property descriptions. To attract new residents, you have to showcase your property on various media channels and showcase what it is like to live there.

Here are some of the costs associated with advertising a rental property:

• Photography and video of the property: $300
• Digital floor plan of the property: $370
• Local newspaper advertising $500-$1,000
• Social media ads $50-$500 a month

These costs will vary depending on your area, the competition, and how often you want your ads to run, but on average, you can expect to spend anywhere from $1,220-$2,170 to market your vacant properties. You will have to pay an employee to set up all this advertising, show the property, and vet potential residents.

With all these costs factored in, a unit sitting vacant for 35 days costs $3,286. Please remember that these are just estimates to help give you an idea of how much money you could potentially lose during a turnover.

This estimate will vary based on your location, the average rent costs in your area, how much vendors charge for services, and how much work a unit needs to be rent ready.

Rental Turnover and Owner Retention

As a property manager, you aim to produce revenue while keeping your assets in good condition. Failing to do this may lead to increased owner churn. Your property owners care about their bottom line, and if you have abnormally high turnover rates, their bottom line will be negatively affected. This means when you send out owner statements at the end of the year, you may receive calls from property owners upset about profit loss, or even worse, they want to find a new property management company.

Property owners are paying you to manage their property and make money, so if that isn’t happening, they will likely look elsewhere. What is the result? When a property owner leaves, you will see a huge financial hit. Not to mention it will take time and resources to attract new owners. The longer an owner stays with your company, the more money you make. In addition, keeping your owners happy is a great way to attract new ones. Word of mouth goes a long way!

We already know that residents use online reviews as a factor when deciding where to live. Property owners also rely on online reviews to determine the success of a property management company. If you can improve resident satisfaction, you will eliminate the number of turnovers you have to deal with and improve your online ratings. Property management companies with positive online reviews are more likely to attract new property owners.

How to Lower Turnover Costs

If you want to lower turnover costs, your best option is to improve your resident satisfaction. The happier your residents are, the more likely they are to renew their lease. A great way to improve resident satisfaction is to provide a seamless property maintenance experience. With a streamlined maintenance process, residents are kept in the loop about their work orders, and maintenance issues get resolved quickly. With dedicated maintenance software, you can provide your residents with a more positive experience. In addition, property maintenance software can keep track of turnovers so you can schedule turnover tasks as soon as a resident gives the notice to move. This allows you to monitor turnovers and reduce the number of days a unit is vacant.

If you are interested in learning more about our industry-leading property maintenance software, schedule a demo with our team to learn more.

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The post The Cost of Rental Turnover appeared first on Property Meld.